Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Nuplex cuts earnings guidance a second time

Nuplex cuts earnings guidance a second time

By Jonathan Underhill

June 10 (BusinessDesk) - Nuplex Industries cut its full-year earnings guidance for a second time, saying competition across its Australia and New Zealand business has squeezed margins for both resins and specialty chemicals.

Earnings before interest, tax, depreciation and amortisation (ebitda) for the 12 months ending June 30 are now expected to be between $121 million and $125 million, compared with guidance issued four months ago for ebitda to fall within the lower end of a range of $130 million to $145 million.

The projection includes $2.4 million of net costs to reorganise its Australasian business and an estimated $2 million in foreign exchange losses.

Net profit would likely match 2013's result of $42.9 million, subject to accounting adjustments, the Auckland-based company said in a statement.

"As noted back in February, the outlook for Australia-New Zealand (ANZ) was challenging," said chief executive Emery Severin. "Since then, whilst volumes have been in line with internal forecasts, competitive pressures have impacted margins across the larger businesses."

The shares fell 4.8 percent to $3.20 and are down 1.2 percent this year. The stock is rated 'hold', based on the consensus of six analysts surveyed by Reuters.

The company's ANZ resins segment ebitda was expected to drop between 35 percent and 40 percent this year, while the ANZ specialties segment would record a decline of 45 percent to 50 percent, "primarily reflecting margin pressure in both segments," the company said.

The results would include a negative foreign exchange impact of about $2 million, reflecting a stronger kiwi dollar over the past five months, and accounting adjustments for re-organising the ANZ business of $2.1 million, it said.

Trading in Europe had exceeded the company's expectations and as a result, ebitda for Europe, Middle East and Africa is expected to rise between 15 percent and 20 percent in local currency terms. Asia had met expectations and will lift earnings between 10 percent and 15 percent, it said.

In the Americas, ebitda would be flat on a year earlier in local currency terms, reflecting a recent loss of tolling volumes, Nuplex said.

The company expects to hold its 2014 dividend payment in line with payments for 2013, it said.

Nuplex will release its full-year results on August 14.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news